SJM Raises US$540 Million via Senior Notes to Bolster Financial Flexibility

SJM Holdings has issued US$540 million in senior notes due 2031, carrying a 6.5% coupon, as part of efforts to strengthen liquidity and enhance financial flexibility amid ongoing structural changes in Macau’s gaming sector. The issuance, reported by industry media, comes as SJM continues to rebalance its capital structure following the post-pandemic recovery and the transition away from satellite casino operations.

According to disclosures, proceeds from the notes are expected to be used for refinancing existing debt, general corporate purposes and working capital needs. Management framed the transaction as a proactive move to extend debt maturities and optimise funding costs, rather than a response to immediate liquidity stress. The notes were issued at par and attracted investor interest despite a still-elevated global interest rate environment.

Analysts note that SJM’s funding strategy reflects broader trends among Macau operators, many of whom have turned to capital markets over the past 18 months to smooth near-term repayment profiles and preserve cash for operations and marketing. In SJM’s case, the strategy is particularly relevant as it absorbs costs linked to satellite casino closures and continues to ramp up its flagship Grand Lisboa Palace property.

From a credit perspective, ratings agencies have previously flagged execution risk and market share pressure as key challenges for SJM, even as Macau’s gross gaming revenue continues to recover. Industry commentary from financial institutions such as Fitch and JP Morgan has highlighted that while refinancing improves short-term flexibility, sustained earnings growth will be essential for longer-term deleveraging and balance sheet repair.

Comparatively, peers including MGM China and Galaxy Entertainment Group have also accessed debt markets or adjusted capital allocation strategies to support expansion and non-gaming investments. This suggests SJM’s move is consistent with sector-wide efforts to align financing structures with the Macau government’s diversification and concession obligations.

Looking ahead, market observers believe the success of SJM’s bond issuance provides near-term breathing room, but investor focus will remain on operational performance, cost control and Cotai ramp-up progress. As Macau’s competitive landscape intensifies, SJM’s ability to translate improved financial flexibility into stronger cash flow generation will be critical in shaping sentiment toward its credit and equity outlook.